Is Verizon a hidden value winner of AI adoption?


Here are some very speculative reasons why Verizon might be a strong beneficiary of AI:

  • Verizon is already using Google-powered AI to do customer service. Verizon claims AI can help employees answer 95% of the customers questions.

  • Due to increase in data transmission caused by growing consumer/corporate use of AI, Verizon expects to double its network in next 5 years.

  • AI is helping Verizon prevent accidental line disruptions.

  • Verizon has 1,500 data points on each telephone number. Right now they are using that for offering personalized customer service and deals, which they claim has increased retention.

  • But imagine if Verizon also uses this data to power an advertising network.

  • Verizon Business can presumably also offer AI-powered services to clients. For example, increasing cybersecurity, or using AI dashcams to boost fleet safety.

To balance things out, here are some cons of Verizon via Morningstar:

  • As wireless and broadband services become increasingly essential for social inclusion, regulators might step in to set prices if Verizon's prices are too high.

  • Regulators could release more new spectrums, allowing easier entry of new competitors into the industry.

  • Large cable companies are deploying wi-fi networks to provide limited wireless coverage. New technology could enhance these efforts and make them viable competitors.


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